The SEC dropped its lawsuit against Binance and Zhao with prejudice, permanently ending the legal action without setting a regulatory precedent.
This move follows the agency’s recent pause on enforcement cases as it shifts toward developing structured crypto policies.
The decision reflects broader regulatory changes under the Trump administration, with pro-crypto figures shaping the SEC’s strategic direction.
The U.S. Securities and Exchange Commission has officially dismissed its lawsuit against Binance and co-founder Changpeng Zhao. A request to throw out the case was filed by the parties on May 29 at the U.S. District Court in Washington, D.C. The decision brings to a close an important enforcement action that began in June this year.
The SEC initially accused Binance of diverting customer assets, manipulating trading volumes, and allowing U.S. users to access its international platform without registration. The case also claimed that Binance had listed tokens such as Solana and Cardano, which the agency considered unregistered securities. In October 2024, the SEC amended its complaint to add further allegations.
The court’s dismissal has been confirmed with prejudice.
According to the agency’s recent filing, the case has been dismissed with prejudice, so the SEC cannot refile the same charges. According to the document, the dismissal was made due to the need for discretion in policy decisions. Even though it marks the end of the case, the outcome doesn’t create a new SEC policy for digital assets.
https://twitter.com/binance/status/1928202875773034556
The dismissal comes after two pauses in the case earlier in 2025. Both pauses followed the formation of a new crypto task force under acting SEC Chairman Mark T. Uyeda. The group had been examining the agency’s approach to crypto enforcement and regulatory development. This action suggests a broader pivot from case-by-case enforcement to policy guidance.
Industry and Political Reaction
Binance took to social media to endorse the move, saying it was a beneficial step for the crypto industry. The company gave credit to President Donald Trump and current SEC Chair Paul Atkins for bringing about a more even regulatory approach. The decision to step back from Facebook Stablecoin also matches the way the agency ended cases involving Coinbase, Kraken, and Consensys.
The SEC’s decision follows Binance’s earlier criminal settlement with the U.S. Department of Justice in November 2023. That agreement involved a $4.3 billion payment and included Zhao’s resignation and a four-month prison sentence. The SEC’s retreat from enforcement may indicate a strategic adjustment under new political and regulatory leadership.
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